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LSR Opens $326 Million Brick Plant to Supply Home Market

OAO LSR Group started brick production at its new 10 billion-ruble ($326 million) plant in Russia’s Leningrad region close to St. Petersburg.

The plant has an annual capacity of 160 million bricks. LSR also opened concrete plant with a 1.68 million-ton annual capacity in the same region and a brick plant in the Moscow region, near Russia’s capital, to produce 70 million bricks per year and develop its raw-material base.

“LSR will sell bricks from the new plant on the local market and will consume less than 3 percent of its production volumes by itself,” Alexander Vakhmistrov, the company’s general director, said to reporters.

The company is considering setting up the concrete plant near Ryazan in the the center of Russia’s with a 1.6 million-ton annual capacity to develop its raw material unit, Vakhmistrov said. He declined to tell the details because the project is not finally approved by the company’s management.

Housing construction in St. Petersburg, Russia’s second-biggest city, grew 2.9 percent in the first 11 months from a year earlier to 1.6 million square meters, while total Russia construction rose 3.8 percent to 40.1 million square meters, according to Rosstat, Russia’a state statistic service.

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